What is the supplier locking?

The supplier locking is when the customer is locked using a specific supplier for his products. The customer is locked because the switching costs would be too big to make the thrust easier. There are several industries subject to dealers, such as mobile phones, cars, retail devices and computer software. This situation occurs when the customer has to buy products from a particular supplier to remain competitive. These high costs also sometimes create obstacles to the entry in a particular industry. As a result, it is very difficult for new competitors to come to the market and be competitive. When it happened in the past, there was a resolution in the anti -monopolous litigation to try to break a monopoly. The customer must then get more to keep his current seller than to consider other options. In this case, it is better for the customer to stick to your current supplier.

One of the most common examples of supplier locking is a gift certificate. GiftVé certificates force customers to buy goods from a specific seller. The gift certificate holder could potentially shop with another store, but would have to pay more. Gift certificate issuing is a good way to create a supplier lock.

Another example of the supplier locking is in the mobile phones industry. Many mobile phones must be used with a SIM card from a specific mobile phone provider. The owner of the mobile phone cannot switch to another carrier, even if he wanted.

The automotive industry also grows with the locking of the supplier. Many vehicles have parts that cannot be replaced by parts from another company. They are designed in such a way that only parts from a particular manufacturerautkarer will work in the car. This means that if the customer wants to repair something, parts must be ordered from the manufacturer.

Computer software branch is also known for creatingthe supplier locking. Some Internet browsers include programs that are used in most computers. This creates a situation where this type of software will be used with many other applications.